MUMBAI: On Tuesday, the Maharashtra cabinet sanctioned a new land acquisition and allotment policy for the proposed “Third Mumbai” project, located within the impact area of the Mumbai Trans Harbour Link (MTHL), also referred to as Atal Setu.
This policy aims to enhance planned urban development and spur investment in the Mumbai Metropolitan Region (MMR).
The policy will govern development initiatives led by the New Town Development Authority in the Atal Bihari Vajpayee Shivdi-Nhava Sheva Atal Setu’s influence area and the Mumbai Metropolitan Region Development Authority (MMRDA).
The decision is anticipated to provide a structured framework for urbanization, industrial investment, logistics hubs, and infrastructure development within the Atal Setu influence area, according to a statement from the Chief Minister’s Office (CMO).
Land acquisition is to be conducted either through mutual agreement under Section 126(1) of the Maharashtra Regional and Town Planning Act, 1966, or by calculating compensation according to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Chaired by CM Devendra Fadnavis, the cabinet also approved compensation via Floor Space Index (FSI) or Transferable Development Rights (TDR) rather than cash, applicable under Section 126(10) of the MRTP Act. Additional FSI or TDR may be offered as needed for amenities and construction purposes.
The new framework includes a 22.5% land return policy. Project-affected individuals whose privately-owned land is acquired through negotiation will receive developed plots per government resolutions dated March 1, 2014, and May 28, 2014. If the developed plot is less than 40 square meters, cash compensation will be awarded instead.
To stimulate industrial growth in underdeveloped areas, the cabinet approved a ‘pass-through policy’. Under this, costs related to land acquisition compensation and infrastructure development will be recouped from plot holders in installments. The allottee will be responsible for the total land acquisition cost, registration fees, and establishment expenses, with a 15% establishment charge imposed by MMRDA, the CMO reported.
MMRDA will not provide infrastructure in such regions, and land will be allocated on an “as-is-where-is” basis. Any future increases in compensation will also be charged to the allottee. A formal agreement outlining these conditions will be established between MMRDA and the plot holder.
Industries intending to bring foreign direct investment (FDI) into the Atal Setu area will receive priority in land allotment in line with the MIDC policy. Such investors must secure a minimum of 100 acres and commit to investing at least Rs 250 crore per 100 acres within four years, excluding land costs.
Sale or transfer of undeveloped land will be prohibited, with up to 25% of the total developed area permitted for FDI projects, subject to MMRDA’s eligibility criteria and regulations, according to the statement.
The Cabinet also consented to solicit proposals from land aggregators for land development and establishing development hubs through Special Purpose Vehicles (SPVs) in partnership.
MMRDA has been tasked with creating detailed land allotment rules and submitting them for government approval.
Additionally, MMRDA has been directed to present a comprehensive revenue model aimed at maximizing government and authority revenues through infrastructure development.
This decision is expected to drive the development of Third Mumbai and foster new urban and industrial growth centers in the Mumbai Metropolitan Region.
The cabinet also approved a long-term loan of Rs 15,000 crore from NABARD to complete water resource projects, impacting approximately 8 lakh hectares of agricultural land statewide.
Additionally, 12.76 hectares of government land at Vikaswadi in Karveer taluka, Kolhapur district, has been allocated for an international-standard cricket stadium.
To expedite the Purandar airport project in Pune district, the cabinet sanctioned the creation of a Special Purpose Vehicle (SPV) and a Rs 6,000 crore loan for land acquisition and related works.
The loan will be repaid by state entities, including MIDC, MADC, and CIDCO, based on their shareholdings, with the Maharashtra government providing approval and guarantees.
Fadnavis noted that 96% of farmers have consented to the project.
The cabinet approved the launch of the ‘Majha Gaav, Arogya Sampanna Gaav’ (My Village, Healthy Village) campaign, focused on enhancing health at the village level. This initiative will run from April 1 to March 31, 2027, with an annual budget of Rs 80.75 crore.
The cabinet has authorized the transfer of 1,000 acres at Ratnapuri Mala in Indapur taluka, Pune district, to MIDC for a new industrial estate.
In Mumbai, a joint development plan for MHADA land at Kolekalyan in Andheri has been approved to enhance tennis infrastructure through the MahaTennis Foundation.
The cabinet also sanctioned an ordinance for resolving pending tax dues, interest, penalties, and late fees, along with amendments to laws concerning public universities and private unaided professional educational institutions, according to the statement.
